Filenews 7 August 2025
Israel and Egypt have signed a multi-year gas supply agreement worth $35 billion, as part of strengthening energy cooperation between the two countries. The deal is to supply Egypt with 130 billion cubic meters (bcm) of Israeli gas from the Leviathan field over the next 14 years.
According to a statement from NewMed Energy LP, a partner in the Leviathan consortium, deliveries will start at 20 bcm in the first half of 2026 and will increase to 110 bcm gradually once the export infrastructure expansion project is completed. Israeli production will be channelled to Blue Ocean Energy, the buyer that has agreed to receive the quantities by 2040.
The deal is Egypt's latest step to cover its growing energy deficit. The country is facing a significant decline in domestic gas production, while energy consumption continues to rise. In 2024, Egypt was transformed from an exporter to a net importer of liquefied natural gas (LNG), due to domestic supply constraints.
The Leviathan field had started supplying Egypt with gas more than five years ago, as part of a 60 bcm deal, which corresponded to an annual flow of about 4.5 bcm. The new agreement doubles the duration and significantly expands the volume of exports.
The cooperation strengthens Israel's geopolitical position as a major energy supplier in the Eastern Mediterranean and is linked to Egypt's efforts to ensure long-term energy flows to meet domestic needs and boost industrial productio
